Honda Car India aims to increase auto components export by 50% this fiscal

Apart from exporting cars made in India, Honda Car India is also a major exporter of auto components. In the last financial year 2014-15 Honda exported auto components worth INR 722 crores.

Now, for the current fiscal 2015-16, Honda is aiming to increase auto components export by more than 50 percent to INR 1,100 crores. This will be made possible as the company has added new export markets in their list. These countries are US, China and Canada.

Making India a global export hub, various engine parts, forgings and transmission besides other car components produced from the Honda plant in Tapukara, Rajasthan make their way to right hand drive countries such as Japan, Thailand, Malaysia, Indonesia, Philippines, Taiwan, Vietnam, UK, Brazil and Mexico.

The company has seen a steady increase in exports over the past few years, both – fully built cars and auto components. In 2013-14 a total of 5,798 cars were exported and Rs 420 crores worth of auto component. In the past fiscal, exports increased to 8,403 cars and Rs 722 crores. In the first quarter of the current fiscal, a total of 1,858 units have already been exported.

Earlier this month, Honda launched Jazz in India. But, the same car is being exported to South Africa for many months now. This does not mean that the company is focusing more on exports. India and buyers here will always be their main focus, Mr Sen told RushLane during an interaction recently. Besides Jazz, Honda also exports Brio hatchback, Amaze compact sedan, City sedan and Mobilio MPV, produced from their two plants, one in Greater Noida and the other in Tapukara.

To meet with greater demand (domestic and overseas), Honda is also enhancing production capacity at its Tapukara plant. This will be increased from a current 1.2 lakh units per annum to 1.8 lakh units annually by later this year. This will bring total production of Honda Car India to 3 lakh units per annum.